The U.S. dollar reversed going into the weekend in early
trading today. The U.S. dollar index climbed to 79.86, up 0.72%
on jitters of QE3, and it may continue to appreciate in the U.S.
FOREX trading session as traders look to the U.S. dollar as a
The U.S. dollar strength is likely to be short-lived as analysts
points to a soft inflation report that ticked up only 0.1%.
Actual CPI fell in between the previous of 0.04% and the
Traders will be focusing on the speech from Fed chairman Ben
Bernanke at 1:00 p.m. EST.
With the Fed officials continuing to shift their stance to the
dovish side of monetary policy, traders looking for QE3 may find
Bernanke attempting to strike a balance in his speech to try
keeping QE3 on the table in order to encourage a stronger
recovery, which seems to be heading into a soft patch.
Analysts are suggesting if the FOMC takes action it will most
likely be in the form of extending 'Operation Twist' to continue
to lift the housing market.
The U.S. dollar is catching a bid going into the weekend but
continues to face headwinds in the future. Look for a small short
term bounce to fade as technicals once again take control.